Basics Of Standby Letter Of Credit Discount | lease sblc

1. THE HANSON GROUP OF COMPANIES WELCOME

2. Basics Of Standby Letter Of Credit Discount | lease sblc

3. Fail to fulfill your contractual obligations • Reassure your buyer or seller of payment with a Banker’s standby letter of credit discount. In the event that you fail to fulfill your contractual obligations

4. Basics of standby letter of credit discount  • The applicant in an LC transaction is usually the buyer or importer of goods. The applicant of the LC has to make the payment if documents, as per the conditions of the LC are delivered to the Bank.

5. Conditions • The beneficiary is the party to whom the LC is addressed, i.e., the seller or exporter. The beneficiary would receive payment from the nominated bank against the submission of documents as per the LC condition.

6. The standby letter of credit discount can be used as a • Payment Guarantee – This protects the beneficiary in the event that the applicant fails to honor the payment under their contract • Bid Bond – This enables the applicant (the bidder) to use credit to support the bid, and can also be used to ensure the buyer that the contract will be met • Performance Bond – Some bidding contracts require the successful bidder to provide a performance guarantee to protect against a default • Financial Guarantee – This helps the applicant’s overseas subsidiaries obtain financing or credit facilities from banks • The Guarantee can be issued by us  or by our overseas Branches/correspondents, according to the guarantee format provided by the applicant

8. CONTACT US The Hanson Group Of Companies First Floor-Commercial Area, Calle 53, Marbella Panama City, Panama United State Contact No. +(507) 205-1806 Fax: +(507) 205-1802